When GoPro announced its results for the last quarter of 2015, its shares took a sharp 19 percent dive due to a reported net loss of $34.5 million.
Unfortunately, it seems that the company is continuing the trend into 2016.
GoPro posted a net loss for the first quarter of $107.5 million, which represents a massive 741.5 percent decrease compared to the $16.8 million profit reported in the corresponding period of the previous year.
The company's revenue was reported at $183.5 million, which is lower by 49.5 percent compared to the $363.1 million revenue posted in the first quarter of 2015.
Within the company's disappointing press release for its results, GoPro CEO and founder Nick Woodman revealed that the launch of Karma, the company's drone, will be delayed into the holiday season from the initially expected launch of June.
The move is a logical one to make for GoPro, as drones have been a popular gift item for the holidays in recent years. However, the question being asked is what the state of GoPro will be once Karma is released.
The company is tagging Karma as the product that could save its business, but with it delayed, will GoPro have enough in it to survive until it hopefully draws in profits from the sale of the drone?
It is important for GoPro to get Karma in its best form before its release, with fine-tuning to the product said to be among the causes of delay. The delay, even for a good reason, is still costly for the company, though, as with GoPro not announcing its new Hero line of cameras until fall, the company will not have any new products to sell for several months. As such, GoPro could be on track to report its first annual decline in sales this year.
Woodman has previously stated that the drone will have revolutionary features that will make it unique compared to all other drones in the market, but what those features are remain unknown.
